Stock Analysis on Net

Caterpillar Inc. (NYSE:CAT)

$24.99

Analysis of Reportable Segments

Microsoft Excel

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Segment Profit Margin

Caterpillar Inc., profit margin by reportable segment

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Construction Industries
The profit margin for Construction Industries exhibited a consistent upward trend from 2020 to 2023, starting at 14.03% and reaching a peak of 25.44% in 2023. This represents a significant improvement in profitability over the four-year period. However, in 2024, the margin slightly decreased to 24.22%, indicating a minor contraction after a period of substantial growth.
Resource Industries
The segment showed steady growth in profit margins from 11.33% in 2020 to 20.86% in 2023. This growth indicates an increasingly profitable performance year-over-year. In 2024, there was a slight decline to 20.45%, suggesting a plateau or minor setback following several years of continuous improvement.
Energy & Transportation
This segment's profit margin remained relatively stable between 2020 and 2022, fluctuating modestly around 13.6-13.9%. Starting in 2023, a noticeable increase occurred, raising the margin to 17.63%, followed by a further improvement to 19.88% in 2024. This indicates a positive trend in profitability emerging in the most recent two years after a period of stability.
Financial Products
The Financial Products segment exhibited the highest profit margins among all segments throughout the period. Margins increased sharply from 19.38% in 2020 to a peak of 29.55% in 2021. This was followed by a gradual decline over the next three years, decreasing to 26.56% in 2022, then to 24.02% in 2023, and further down to 23% in 2024. Although this represents a decrease from the peak, the margins remain strong relative to other segments.
Overall Insights
The largest margin expansions over the observed period occurred in Construction and Resource Industries, reflecting significant improvements in operational profitability in these areas. Energy & Transportation showed recent, promising margin growth after a stable initial phase. Financial Products, despite a reduction from its peak margin, continues to maintain the highest margins, underscoring its relative profitability. The minor declines in 2024 for Construction and Resource Industries may warrant further investigation to understand potential market or operational factors influencing these changes.

Segment Profit Margin: Construction Industries

Caterpillar Inc.; Construction Industries; segment profit margin calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Sales and revenues
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =


Profit
The profit in the Construction Industries segment showed a consistent upward trend from 2020 through 2023, starting at 2,373 million US dollars in 2020 and reaching a peak of 6,975 million US dollars in 2023. However, in 2024, there was a noticeable decline to 6,165 million US dollars, indicating a decrease of approximately 11.6% compared to the previous year.
Sales and Revenues
Sales and revenues also increased steadily from 16,918 million US dollars in 2020 to a maximum of 27,418 million US dollars in 2023. In 2024, sales decreased to 25,455 million US dollars, reflecting a reduction of about 7.2% from 2023. Despite this decline, the 2024 revenue remains significantly higher than the figures recorded in 2020 and 2021.
Segment Profit Margin
The segment profit margin demonstrated a robust upward trajectory over the years. It rose from 14.03% in 2020 to a peak of 25.44% in 2023, indicating improved profitability and operational efficiency within the segment. In 2024, the profit margin slightly decreased to 24.22%, yet it remained elevated, suggesting the segment sustained strong profit generation capabilities despite the revenue decline.

Segment Profit Margin: Resource Industries

Caterpillar Inc.; Resource Industries; segment profit margin calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Sales and revenues
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =


Sales and Revenues
The sales and revenues in the Resource Industries segment demonstrated a general upward trend from 2020 to 2023, increasing from 7,906 million US dollars in 2020 to a peak of 13,583 million US dollars in 2023. However, this trend reversed in 2024, with revenues declining to 12,389 million US dollars.
Profit
Profit followed an overall increasing trajectory through the period, rising from 896 million US dollars in 2020 to a high of 2,834 million US dollars in 2023. However, in 2024, profit declined to 2,533 million US dollars, reflecting a contraction relative to the peak in the previous year but remaining significantly higher than the values recorded from 2020 to 2022.
Segment Profit Margin
The segment profit margin improved consistently from 11.33% in 2020 to 20.86% in 2023, indicating an enhancement in profitability relative to sales. Despite the reduction in absolute profit and revenues in 2024, the margin remained high at 20.45%, suggesting continued operational efficiency and cost management within the segment.
Overall Analysis
Throughout the period analyzed, the Resource Industries segment exhibited significant growth in profit and revenue, with the most notable jump occurring between 2021 and 2023. The high profit margins in 2023 and 2024 suggest improved profitability and efficiency. The downturn in revenue and profit in 2024 signals potential challenges such as market conditions or operational factors impacting the segment. Nevertheless, the segment maintained strong profitability margins relative to previous years, indicating resilience despite the slight decrease in absolute financial measures.

Segment Profit Margin: Energy & Transportation

Caterpillar Inc.; Energy & Transportation; segment profit margin calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Sales and revenues
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =


Profit
Profit has shown a consistent upward trajectory over the five-year period. Starting at 2,405 million US dollars in 2020, it increased steadily each year, reaching 5,736 million US dollars by 2024. This represents a more than doubling of profit, indicating strong performance improvement within the segment.
Sales and Revenues
Sales and revenues also demonstrated growth across the period. Beginning at 17,470 million US dollars in 2020, revenues rose annually to 28,854 million US dollars in 2024. However, the rate of increase slightly moderated in the final year, with revenues growing by approximately 3% from 2023 to 2024 compared to higher growth rates in previous years.
Segment Profit Margin
The segment profit margin displayed a positive trend, moving from 13.77% in 2020 to 19.88% in 2024. While the margin remained relatively stable around 13-14% from 2020 to 2022, it increased significantly in 2023 and 2024. This improvement in profitability suggests enhanced operational efficiency or favorable market conditions contributing to better margin realization.

Segment Profit Margin: Financial Products

Caterpillar Inc.; Financial Products; segment profit margin calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Sales and revenues
Segment Profitability Ratio
Segment profit margin1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =


The financial data for the "Financial Products" segment over the five-year period from 2020 to 2024 reveals several notable trends in profitability, revenue generation, and profit margin performance.

Profit
The profit figures demonstrate a general upward trend over the period under review. Starting from US$590 million in 2020, profit increased significantly to US$908 million in 2021, representing a substantial growth. Although there was a slight decline to US$864 million in 2022, profit rebounded in the following years, reaching US$909 million in 2023 and further increased to US$932 million in 2024. This indicates a recovery and sustained growth in profitability after a temporary dip in 2022.
Sales and Revenues
Sales and revenues exhibit consistent growth throughout the five years. Beginning at US$3,044 million in 2020, revenues increased steadily each year, reaching US$3,073 million in 2021, US$3,253 million in 2022, US$3,785 million in 2023, and ultimately US$4,053 million in 2024. The data points to a robust increase in sales volume or pricing power contributing positively to the overall revenue base of the segment.
Segment Profit Margin
The segment profit margin, expressed as a percentage, indicates a volatility pattern with an initial sharp rise from 19.38% in 2020 to a peak of 29.55% in 2021. Following this peak, the margin experienced a decline over the subsequent years, dropping to 26.56% in 2022, then further decreasing to 24.02% in 2023, and reaching 23% in 2024. This suggests that while the segment became more profitable relative to its sales in 2021, the efficiency or profitability per unit of sales declined gradually after that year, possibly due to increased costs, competitive pressures, or strategic investments impacting margins.

In summary, the segment shows strong revenue growth accompanied by increasing absolute profits. However, the profit margin trend signals a reduction in profitability efficiency following the 2021 peak, which may warrant further investigation into cost structures or market dynamics affecting margin compression despite rising sales and profits.


Segment Return on Assets (Segment ROA)

Caterpillar Inc., ROA by reportable segment

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Construction Industries
The Return on Assets (ROA) for this segment demonstrates a strong upward trend from 55.72% in 2020 to a peak of 129.55% in 2023, nearly doubling over the four-year period. In 2024, a decline to 111.16% is observed, indicating some reduction in asset efficiency but remaining significantly higher than the initial value.
Resource Industries
This segment shows a consistent and steady increase in ROA, rising from 14.85% in 2020 to 45.66% in 2024. The growth trajectory is particularly notable between 2021 and 2023, where the percentage more than doubled, reflecting improving asset utilization or profitability.
Energy & Transportation
The ROA for this segment increases moderately from 28.02% in 2020 to 48.73% in 2024. The growth is relatively steady, with a gradual rise each year, suggesting continuous enhancement in operational returns or asset management.
Financial Products
The ROA values for Financial Products remain relatively flat and low throughout the timeframe, fluctuating slightly between 1.72% and 2.6%, and ending at 2.52% in 2024. This consistency suggests a stable but limited return on assets in this area without significant upward or downward trend.

Segment ROA: Construction Industries

Caterpillar Inc.; Construction Industries; segment ROA calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =


Profit
The profit shows a generally increasing trend from 2020 through 2023, rising from 2,373 million US dollars in 2020 to a peak of 6,975 million US dollars in 2023. However, in 2024, there is a noticeable decline to 6,165 million US dollars, indicating a decrease after several years of growth.
Assets
Assets have steadily increased over the entire period, starting at 4,259 million US dollars in 2020 and rising consistently each year to reach 5,546 million US dollars in 2024. The growth rate appears moderate but stable, indicating ongoing investment or asset accumulation.
Segment Return on Assets (ROA)
The segment ROA shows significant improvement over the years. Beginning at 55.72% in 2020, it climbs sharply to 81.5% in 2021 and continues upward to a peak of 129.55% in 2023. In 2024, the ROA decreases to 111.16%, which, although lower than the previous year, remains substantially higher than in earlier periods. This indicates improved efficiency in utilizing assets to generate profit, despite the slight decline in the most recent year.

Segment ROA: Resource Industries

Caterpillar Inc.; Resource Industries; segment ROA calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =


Profit
Profit demonstrated a consistent upward trajectory from 2020 through 2023, starting at 896 million US dollars and peaking at 2,834 million US dollars in 2023. However, there was a notable decline in 2024, with profit decreasing to 2,533 million US dollars, indicating a reduction following the peak year.
Assets
Assets showed a gradual decrease over the assessed period. Beginning at 6,035 million US dollars in 2020, assets declined slightly each year, reaching 5,548 million US dollars by 2024. This steady decline suggests a slow contraction or divestment in asset holdings within the segment.
Segment Return on Assets (ROA)
Segment ROA exhibited a strong improvement trend, increasing from 14.85% in 2020 to a high of 49.36% in 2023. Despite a slight decline in 2024 to 45.66%, the return on assets remained substantially higher than in earlier years, indicating enhanced efficiency in generating profit from the asset base over time.
Overall Trends
The data reveals an overall improvement in profitability and asset utilization efficiency from 2020 to 2023, as evidenced by rising profit and segment ROA despite a decreasing asset base. The slight profit and ROA decline in 2024 points to potential challenges or market conditions impacting performance. The asset base contraction suggests strategic adjustments in capital deployment or operational scale.

Segment ROA: Energy & Transportation

Caterpillar Inc.; Energy & Transportation; segment ROA calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =


Profit
The profit in the segment has shown a consistent upward trend over the five-year period. Starting at $2,405 million in 2020, it increased steadily each year, reaching $5,736 million by 2024. This represents more than a twofold increase, with a particularly notable jump between 2022 and 2023, where profit increased from $3,309 million to $4,936 million, indicating strengthened profitability.
Assets
The total assets employed in the segment have also grown continuously, rising from $8,582 million in 2020 to $11,772 million in 2024. Asset growth has been moderate but consistent, with increases each year reflective of ongoing investment or asset accumulation. The asset base expanded by approximately 37% over the period.
Segment Return on Assets (ROA)
The segment ROA demonstrates a marked improvement in asset efficiency and profitability. ROA increased from 28.02% in 2020 to 48.73% in 2024. This improvement highlights not only rising profits but also more effective use of assets in generating returns. The rise is particularly steep from 35% in 2022 to 46.76% in 2023, coinciding with the significant profit growth noted in that period.

Overall, the data reveals strong financial performance and operational improvement within the segment over the five-year horizon. Profit growth outpaces asset growth, leading to higher returns on assets and indicating effective management and potentially favorable market conditions or operational efficiencies contributing to enhanced profitability.


Segment ROA: Financial Products

Caterpillar Inc.; Financial Products; segment ROA calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Profit
Assets
Segment Profitability Ratio
Segment ROA1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =


Profit Trends
Profit from the financial products segment exhibited a general upward trend over the five-year period. Starting at 590 million US dollars in 2020, there was a substantial increase to 908 million in 2021. Although a slight dip occurred in 2022, reducing profit to 864 million, the figure rebounded to 909 million in 2023 and continued its upward trajectory to 932 million in 2024. Overall, profit nearly doubled from 2020 to 2024, reflecting improved financial performance in the segment.
Asset Trends
The asset base showed a moderate but consistent increase across the years. Beginning at 34,278 million US dollars in 2020, assets slightly increased to 34,860 million in 2021, then edged down to 34,269 million in 2022. From 2023 onward, a more noticeable rise occurred, with assets reaching 35,685 million in 2023 and culminating at 36,925 million in 2024. This steady asset growth suggests ongoing investment or accumulation of financial resources in the segment.
Return on Assets (ROA) Trends
The segment’s Return on Assets (ROA) demonstrated an initial strong improvement from 1.72% in 2020 to 2.6% in 2021. This was followed by a slight decline to 2.52% in 2022 and a marginal increase to 2.55% in 2023, before tapering slightly again to 2.52% in 2024. Overall, the ROA settled at a level higher than the 2020 figure, indicating enhanced efficiency in utilizing assets to generate profit, albeit with minor fluctuations in recent years.
Overall Observations
The financial products segment showed sustained growth in profitability and asset expansion over the five-year period. The increase in profit outpaced the growth of assets, contributing to an improvement in ROA compared to 2020. Despite some fluctuations in profit and ROA in the intermediate years, the segment maintained a stable and efficient operating performance by 2024. The trends reflect positive financial management and potential resilience in this segment of the business.

Segment Asset Turnover

Caterpillar Inc., asset turnover by reportable segment

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Construction Industries
The asset turnover ratio for the Construction Industries segment demonstrated an overall upward trend from 2020 to 2023, increasing from 3.97 to a peak of 5.09. This indicates improving efficiency in utilizing assets to generate revenue during this period. However, in 2024, there was a noticeable decline to 4.59, suggesting a reduction in asset utilization efficiency compared to the previous year.
Resource Industries
This segment displayed a consistent increase in asset turnover ratio over the five-year span. Starting at 1.31 in 2020, the ratio rose steadily each year, reaching 2.37 in 2023. In 2024, there was a slight decrease to 2.23, though this value remained significantly higher than earlier years, reflecting sustained improvement in asset use.
Energy & Transportation
The Energy & Transportation segment showed a gradual increase in asset turnover from 2.04 in 2020 to 2.65 in 2023, indicating enhanced efficiency in resource utilization. Similar to the other segments, a minor decline occurred in 2024, with the ratio dropping to 2.45, signaling a small reduction in turnover effectiveness.
Financial Products
The Financial Products segment maintained a stable and low asset turnover ratio throughout the period, remaining around 0.09 to 0.11. This stability indicates a consistent but limited use of assets in revenue generation, with marginal improvements noted in the later years.

Segment Asset Turnover: Construction Industries

Caterpillar Inc.; Construction Industries; segment asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and revenues
Assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =


Sales and Revenues
Sales and revenues showed a consistent upward trend from 2020 to 2023, increasing from 16,918 million US dollars in 2020 to a peak of 27,418 million US dollars in 2023. However, in 2024, there was a decline to 25,455 million US dollars, indicating a reversal in the growth trend observed in previous years.
Assets
The asset base steadily increased over the five-year period, rising from 4,259 million US dollars at the end of 2020 to 5,546 million US dollars in 2024. This represents a gradual but continuous growth in resources allocated to the segment.
Segment Asset Turnover Ratio
The segment asset turnover ratio improved from 3.97 in 2020 to a peak of 5.09 in 2023, reflecting enhanced efficiency in generating revenue from assets over this period. However, in 2024, the ratio decreased to 4.59, suggesting a reduction in asset utilization efficiency despite the increase in absolute asset values.
Overall Analysis
Over the five-year period, the segment exhibited strong growth in sales and assets, with improvements in asset turnover efficiency up to 2023. The decline in sales and turnover ratio in 2024 may indicate market challenges or operational inefficiencies. The increase in assets amidst declining turnover suggests potential underutilization or a lag in converting asset growth into revenues during the most recent period.

Segment Asset Turnover: Resource Industries

Caterpillar Inc.; Resource Industries; segment asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and revenues
Assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =


Sales and Revenues
Sales and revenues for the period demonstrated an overall upward trajectory from 2020 through 2023, starting at 7,906 million US dollars and reaching a peak of 13,583 million US dollars. This represents a substantial growth over the four-year span. However, in 2024, there was a noticeable decline in sales and revenues, falling to 12,389 million US dollars, which indicates a potential reversal of the prior growth trend.
Assets
Total assets exhibited a consistent downward trend over the five-year period. Beginning at 6,035 million US dollars in 2020, assets decreased steadily each year, reaching 5,548 million US dollars by the end of 2024. This decline suggests a reduction in the asset base supporting the segment's operations.
Segment Asset Turnover
The segment asset turnover ratio improved significantly from 1.31 in 2020 to a peak of 2.37 in 2023. This indicates increasing efficiency in the use of assets to generate sales and revenues. In 2024, the ratio slightly decreased to 2.23 but remained considerably higher than the 2020 level. This trend aligns with the decrease in assets alongside relatively strong sales, enhancing asset utilization despite the sales dip in the final year.

Segment Asset Turnover: Energy & Transportation

Caterpillar Inc.; Energy & Transportation; segment asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and revenues
Assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =


The data for the Energy & Transportation segment reveals several key financial trends over the five-year period ending December 31, 2024.

Sales and Revenues
There is a consistent upward trend in sales and revenues, increasing from $17,470 million in 2020 to $28,854 million in 2024. This represents a strong growth trajectory, with the most notable increase occurring between 2021 and 2023. The growth rate moderates slightly from 2023 to 2024, suggesting a potential plateau or stabilization of revenue expansion in the latest year.
Assets
Total assets in the segment have steadily increased from $8,582 million in 2020 to $11,772 million in 2024. This indicates ongoing investment and asset accumulation to support the business operations. The growth in assets is generally gradual but accelerates slightly in the final years, which may be in response to increasing sales and operational demands.
Segment Asset Turnover Ratio
The segment asset turnover ratio, which measures the efficiency of asset use in generating revenue, shows an overall improving trend from 2.04 in 2020 to a peak of 2.65 in 2023. This suggests that the segment became more effective at utilizing its assets to produce sales during this period. However, in 2024, the ratio decreases slightly to 2.45, signaling a minor decline in asset efficiency despite increased sales and assets.

In summary, the Energy & Transportation segment demonstrates robust revenue growth supported by steady asset expansion. The efficiency of asset utilization improved markedly until 2023, but a slight reduction in 2024 may warrant monitoring. The combined trends indicate strong operational performance with potential caution regarding maintaining asset efficiency as the segment continues to grow.


Segment Asset Turnover: Financial Products

Caterpillar Inc.; Financial Products; segment asset turnover calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Sales and revenues
Assets
Segment Activity Ratio
Segment asset turnover1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =


Sales and Revenues
Sales and revenues exhibited a consistent upward trend over the five-year period, increasing from $3,044 million in 2020 to $4,053 million in 2024. The growth was gradual from 2020 to 2022, with values rising from $3,044 million to $3,253 million. A more pronounced increase is noted in 2023 and 2024, reaching $3,785 million and $4,053 million respectively, indicating an acceleration in revenue generation in the latter years.
Assets
Total assets remained relatively stable over the observed period, fluctuating modestly between $34,269 million and $36,925 million. The asset base showed a slight decrease from $34,278 million in 2020 to $34,269 million in 2022, followed by a gradual increase reaching $36,925 million by the end of 2024. This suggests a cautious asset management approach with moderate expansion in recent years.
Segment Asset Turnover
The segment asset turnover ratio remained steady at 0.09 from 2020 through 2022, indicating consistent efficiency in generating sales from assets during this period. A noticeable improvement occurred in 2023 and 2024, with the ratio increasing to 0.11. This rise reflects enhanced operational efficiency or improved asset utilization, aligning with the accelerated revenue growth observed in the same timeframe.
Overall Insights
The segment demonstrates a positive trajectory in sales growth combined with stable asset levels, resulting in improved asset turnover ratio towards the end of the period. This suggests that the segment has successfully increased its revenue-generating capability relative to its asset base, signaling better performance efficiency and possible strategic improvements in asset management or revenue streams during the later years.

Segment Capital Expenditures to Depreciation

Caterpillar Inc., capital expenditures to depreciation by reportable segment

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The analysis of the capital expenditures to depreciation ratios across the different reportable segments reveals distinct trends over the five-year period from 2020 to 2024.

Construction Industries
The ratio increased significantly from 0.87 in 2020 to a peak of 1.7 in 2023, indicating an expansion in capital expenditures relative to depreciation. In 2024, the ratio declined to 1.39, though it remained well above the initial value, suggesting sustained investment activity despite a slight moderation.
Resource Industries
This segment started with a low ratio of 0.3 in 2020, reflecting relatively lower capital expenditures compared to depreciation. The ratio demonstrated steady growth annually, reaching 1.03 by 2024. This consistent upward trajectory indicates a progressive increase in asset reinvestment relative to the consumption of existing assets.
Energy & Transportation
The ratio exhibited a robust and continuous increase throughout the period, rising from 0.83 in 2020 to 2.21 in 2024. This strong growth suggests aggressive capital expenditure initiatives, likely aimed at asset expansion or modernization, outpacing depreciation at a substantial rate.
Financial Products
This segment started with the highest ratio of 1.42 in 2020, indicating strong investment relative to depreciation. The ratio peaked at 1.78 in 2023 but declined to 1.47 in 2024. Despite the decrease, the ratio remains relatively high compared to earlier years, reflecting a generally high but somewhat fluctuating capital expenditure pattern.

Overall, most segments reveal increasing capital expenditure intensity relative to depreciation, suggesting ongoing investment and growth strategies. Energy & Transportation and Resource Industries segments demonstrate the most pronounced upward movement, while the Construction Industries and Financial Products segments show high but more variable ratios, indicating potential shifts in investment dynamics or asset management approaches in the most recent year.


Segment Capital Expenditures to Depreciation: Construction Industries

Caterpillar Inc.; Construction Industries; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


Capital Expenditures
The capital expenditures exhibit an overall upward trend from 2020 to 2023, increasing from $213 million in 2020 to a peak of $376 million in 2023. However, there is a slight decline in 2024, where capital expenditures decrease to $323 million. This suggests an initial period of increased investment followed by a moderate reduction in the latest year.
Depreciation and Amortization
Depreciation and amortization expenses show a decreasing trend from 2020 through 2023, falling from $245 million to $221 million. In 2024, there is a slight rebound to $233 million. Overall, the pattern indicates a gradual reduction in these expenses over the first four years, with a minor uptick in the last year.
Segment Capital Expenditures to Depreciation Ratio
The ratio of capital expenditures to depreciation increases consistently from 0.87 in 2020 to a peak of 1.7 in 2023, indicating that capital investments were growing at a faster rate than the depreciation expenses during this period. In 2024, the ratio decreases to 1.39, reflecting the reduction in capital expenditures combined with a slight increase in depreciation expenses. This ratio trend suggests a strategic shift towards higher investment in fixed assets relative to depreciation through 2023, followed by a moderation in 2024.

Segment Capital Expenditures to Depreciation: Resource Industries

Caterpillar Inc.; Resource Industries; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


Capital Expenditures
The capital expenditures have shown a consistent upward trend over the five-year period. Starting at 125 million US dollars in 2020, the expenditures increased steadily each year, reaching 268 million US dollars by 2024. This demonstrates a growing investment in the segment’s resources and infrastructure.
Depreciation and Amortization
Depreciation and amortization expenses have exhibited a declining trend during the same period. From 418 million US dollars in 2020, these expenses decreased annually to arrive at 260 million US dollars in 2024. This decline could be indicative of older assets becoming fully depreciated or a change in the asset base composition.
Segment Capital Expenditures to Depreciation Ratio
The ratio of capital expenditures to depreciation has increased markedly, rising from 0.3 in 2020 to 1.03 in 2024. This indicates that capital expenditures are increasingly outpacing depreciation charges, suggesting expanded asset acquisition and possible growth or modernization initiatives within the segment.
Overall Analysis
The data reflect a strategic emphasis on capital investment within the resource industries segment, as evidenced by rising capital expenditures and a higher capital expenditures to depreciation ratio. Concurrently, the declining depreciation expense suggests that prior asset investments are aging or being depreciated at a slower rate relative to new investments. This dynamic may support future production capacity and operational capability enhancements.

Segment Capital Expenditures to Depreciation: Energy & Transportation

Caterpillar Inc.; Energy & Transportation; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


Capital Expenditures
The capital expenditures exhibit a consistent upward trend over the five-year period. Starting at $495 million in 2020, expenditures increased steadily to reach $1,279 million in 2024. This represents a significant growth, more than doubling over the timeframe, which may indicate increased investment in assets or expansion initiatives within the segment.
Depreciation and Amortization
The depreciation and amortization expenses show a slight decline from $593 million in 2020 to $547 million in 2022, followed by a modest increase to $578 million by 2024. Overall, these expenses remain relatively stable with minor fluctuations, suggesting steady asset base aging and amortization of intangible assets during the period.
Segment Capital Expenditures to Depreciation Ratio
This ratio demonstrates a clear and consistent increase each year, moving from 0.83 in 2020 to 2.21 in 2024. The rising ratio indicates that capital expenditures are growing at a faster pace than depreciation expenses, suggesting potential expansion of the asset base or modernization efforts that may exceed asset consumption or replacement costs within the segment.

Segment Capital Expenditures to Depreciation: Financial Products

Caterpillar Inc.; Financial Products; segment capital expenditures to depreciation calculation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Capital expenditures
Depreciation and amortization
Segment Financial Ratio
Segment capital expenditures to depreciation1

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =


Capital Expenditures
The capital expenditures demonstrate a fluctuating trend over the analyzed period. Starting at $1,100 million in 2020, there was an increase to $1,218 million in 2021 followed by a slight decrease to $1,141 million in 2022. A noticeable peak occurred in 2023 with expenditures reaching $1,299 million, after which the figure declined to $1,085 million in 2024. Overall, the capital expenditures vary but display a tendency to increase towards 2023 before retreating in the latest period.
Depreciation and Amortization
Depreciation and amortization expense remained relatively stable throughout the period. It started at $773 million in 2020 and showed a marginal decrease to $740 million by 2024. The values hovered close to the mid-700 millions, with the lowest point recorded in 2023 at $731 million. Such consistency suggests steady asset usage patterns without significant impairment or accelerated amortization.
Segment Capital Expenditures to Depreciation Ratio
The ratio of segment capital expenditures to depreciation revealed variability during the period. It rose from 1.42 in 2020 to a high of 1.78 in 2023, indicating that capital investments increased more rapidly compared to the depreciation expense during that time. However, in 2024, the ratio decreased to 1.47, which may reflect a pullback in capital spending relative to the ongoing depreciation charge. The overall trend suggests active investment cycles with periodic adjustments in spending relative to asset aging.

Sales and revenues

Caterpillar Inc., sales and revenues by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products
Total reportable segments

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Construction Industries
The sales and revenues for the Construction Industries segment showed a consistent upward trajectory from 2020 through 2023, increasing from 16,918 million US dollars to a peak of 27,418 million US dollars. However, in 2024, there was a notable decline to 25,455 million US dollars, indicating a potential reversal in growth or a market adjustment.
Resource Industries
This segment experienced steady growth from 7,906 million US dollars in 2020 to a higher point of 13,583 million US dollars in 2023. Similar to Construction Industries, the Resources segment saw a decrease in 2024, falling to 12,389 million US dollars, which may suggest challenges in this sector or shifts in demand.
Energy & Transportation
Energy & Transportation revenues steadily increased over the five-year period, starting at 17,470 million US dollars in 2020 and reaching 28,854 million US dollars in 2024. Unlike the previous two segments, this segment did not experience a decline and demonstrated ongoing growth even in 2024, albeit with a smaller increment compared to prior years.
Financial Products
The Financial Products segment displayed modest but consistent growth from 3,044 million US dollars in 2020 to 4,053 million US dollars in 2024. The growth rate appears steady without significant fluctuations, indicating stable performance in this area.
Total Reportable Segments
The aggregate of the reportable segments rose significantly from 45,338 million US dollars in 2020 to a maximum of 72,787 million US dollars in 2023. In 2024, there was a slight decrease to 70,751 million US dollars, mainly driven by the declines in Construction and Resource Industries, partially offset by growth in Energy & Transportation and continued gains in Financial Products. Overall, the total segment revenues reflect substantial growth over the five years, with a slight contraction in the most recent period.

Profit

Caterpillar Inc., profit by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products
Total reportable segments

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Construction Industries Segment
The Construction Industries segment displayed a consistent upward trend from 2020 through 2023, with profits increasing from $2,373 million to a peak of $6,975 million. However, in 2024, there was a notable decline to $6,165 million, representing a decrease of approximately 11.6% from the previous year.
Resource Industries Segment
Profits in the Resource Industries segment showed steady growth over the initial four years, rising from $896 million in 2020 to $2,834 million in 2023. In 2024, this segment experienced a decrease to $2,533 million, a reduction of roughly 10.6% compared to 2023.
Energy & Transportation Segment
The Energy & Transportation segment exhibited continuous growth throughout the entire period, with profits increasing each year. Starting from $2,405 million in 2020, the segment reached $5,736 million by 2024, marking a cumulative increase of approximately 138% over five years. Notably, the growth accelerated between 2022 and 2024.
Financial Products Segment
The Financial Products segment's profits rose from $590 million in 2020 to $908 million in 2021, followed by a slight decline to $864 million in 2022. The subsequent years showed modest increases, reaching $932 million in 2024. Overall, this segment demonstrated relatively stable profit levels with minor fluctuations.
Total Reportable Segments
Total profit across all reportable segments increased steadily from $6,264 million in 2020 to a peak of $15,654 million in 2023. In 2024, the total profit marginally decreased to $15,366 million, a drop of approximately 1.8%. This slight decline in total profit was driven primarily by reductions in the Construction and Resource Industries segments, somewhat offset by continued growth in the Energy & Transportation and Financial Products segments.
Summary Insights
The overall profitability of the reportable segments showed substantial growth over the five-year span, especially driven by the Energy & Transportation and Construction Industries segments. The decline in 2024 in certain segments signals potential emerging challenges or market shifts affecting these particular areas. Financial Products maintained a steady performance with limited volatility. The data suggest a need to closely monitor the Construction and Resource Industries segments for factors contributing to the recent downturn.

Assets

Caterpillar Inc., assets by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products
Total reportable segments

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The data presents the annual reportable segment assets of several industry segments over the five-year period ending December 31, 2024. An analysis of these figures reveals distinct trends across the segments.

Construction Industries
This segment shows a consistent upward trend in assets. Starting from 4,259 million US dollars in 2020, assets progressively increased each year, reaching 5,546 million US dollars by 2024. The growth rate appears steady, demonstrating continued investment or asset accumulation in this segment over the period.
Resource Industries
In contrast, the Resource Industries segment indicates a gradual decline in assets. Beginning at 6,035 million US dollars in 2020, the asset value decreases annually, ending at 5,548 million US dollars in 2024. This downward trend may suggest asset divestitures, reduced investment, or depreciation effects outweighing acquisitions.
Energy & Transportation
The Energy & Transportation segment exhibits a steady and pronounced increase in assets. The values rose from 8,582 million US dollars in 2020 to 11,772 million US dollars in 2024, with especially notable increments in the latter years. This reflects significant asset growth, likely driven by expansion or capital investment in this area.
Financial Products
This segment maintains the largest asset base among the reportable segments, with a generally stable but modest growth pattern. Assets increased from 34,278 million US dollars in 2020 to 36,925 million US dollars in 2024. While the changes fluctuate slightly year-to-year, the overall trend signifies relative stability with slight asset growth.
Total reportable segments
The aggregated assets for all reportable segments combined indicate an overall growth trend from 53,154 million US dollars in 2020 to 59,791 million US dollars in 2024. The total assets increase steadily each year, reflecting the combined effects of the individual segment trends. The growth in Construction Industries, Energy & Transportation, and Financial Products more than offset the decline in Resource Industries.

Depreciation and amortization

Caterpillar Inc., depreciation and amortization by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products
Total reportable segments

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Overall Trend
The total depreciation and amortization expense for the reportable segments shows a consistent decline from 2020 through 2023, dropping from 2,029 million USD to 1,805 million USD, followed by a slight increase to 1,811 million USD in 2024.
Construction Industries
This segment exhibits a moderate downward trend in depreciation and amortization expenses from 245 million USD in 2020 to 221 million USD in 2023, with a slight rebound to 233 million USD in 2024. The decline suggests possible asset retirements or lower capital expenditure, while the 2024 uptick could indicate renewed investment or changes in asset base.
Resource Industries
A more pronounced decrease is observed in this segment, with depreciation and amortization declining steadily from 418 million USD in 2020 to 260 million USD in 2024. This sharp reduction may reflect accelerated depreciation, asset sales, or a downscaling of operations within this sector.
Energy & Transportation
This segment maintains a relatively stable expense level, decreasing from 593 million USD in 2020 to 547 million USD in 2022, then slightly increasing to 578 million USD by 2024. The fluctuations are minor, indicating stability in asset utilization and capital investment over the period.
Financial Products
Depreciation and amortization expenses here remain fairly constant, with a marginal decrease from 773 million USD in 2020 to 734 million USD in 2022, followed by a slight recovery to 740 million USD in 2024. This stability might suggest a mature asset base with steady capital expenditure patterns.
Segment Comparison
The Resource Industries segment exhibits the most significant decline in depreciation and amortization, signaling possible strategic shifts or asset base reductions. In contrast, the Energy & Transportation and Financial Products segments show relative stability, while Construction Industries display moderate fluctuations. These differences highlight varying capital asset dynamics and possibly differing operational strategies across segments.

Capital expenditures

Caterpillar Inc., capital expenditures by reportable segment

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Construction Industries
Resource Industries
Energy & Transportation
Financial Products
Total reportable segments

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


The data reveals notable fluctuations and growth patterns in capital expenditures across various segments over the five-year period.

Construction Industries
Capital expenditures exhibited an overall upward trend from 213 million USD in 2020 to a peak of 376 million USD in 2023, indicating increased investment activity. However, a decrease to 323 million USD occurred in 2024, suggesting a possible strategic adjustment or market response after the previous growth.
Resource Industries
Spending in this segment showed a steady increase from 125 million USD in 2020 to 268 million USD in 2024. The growth is incremental and continuous, implying sustained capital allocation toward resource-related operations without significant volatility.
Energy & Transportation
This segment experienced the most pronounced growth, starting at 495 million USD in 2020 and rising sharply to 1,279 million USD by 2024. The rate of growth accelerated notably from 2022 onward, reflecting possibly strategic emphasis or expansion in these sectors.
Financial Products
Capital expenditures fluctuated within this segment, with initial growth from 1,100 million USD in 2020 to 1,299 million USD in 2023, followed by a noticeable decline to 1,085 million USD in 2024. This decline contrasts with the growth patterns observed in other segments and may suggest shifting priorities or market conditions impacting financial product investments.
Total Reportable Segments
The aggregate capital expenditures across all segments increased steadily from 1,933 million USD in 2020 to 2,955 million USD in 2024. The overall upward trajectory points to a general escalation in investment activities, driven predominantly by the Energy & Transportation segment, supported by consistent increases in Resource Industries and Construction Industries, despite the decrease in Financial Products in the final year.